Not sure if this a wise business decisions, thoughts?

[Andrea Jones]

I've recently started researching properties to buy with cash, and use as rentals, then (possibly) selling if the market increases enough. However, it seems like I'm missing something. 

The area I'm looking in has larger historic homes for $10-$15K. The area is somewhat sketchy, so I'm sure that explains the low prices. But rental prices on realtor.com are showing from $800 to $1,300. Am I missing something obvious? Even after purchase price, taxes and maintenance, it seems like the profits would be really good!

This city is near universities and teaching hospitals, so I think the demographics are also in my favor. Are med students a good choice for renters. Or would I be better off with section 8 families? And speaking of section 8, why do so many landlords shy away from accepting it, if it's guaranteed income?

Lastly (for now lol), I would like to use a real estate company to manage the house(s). Any big negatives with that?

[Paul Ewing]

It can be anything including totally bogus info on the size of the house or lot, major structural problems, or ghosts.  Basically it means that the bank knows nothing about the house and no one from the bank has even seen it.  If you are lucky the listing agent might have stopped by long enough to take a couple pictures and pulled some stuff off the tax website maybe. 

I looked at one here that was kind of interesting and if I had the patience to deal with a bank for financing and the REO's stupid brokers game it would have made a good flip and maybe a rental. The house was at least a third larger than stated because of an addition that somehow didn't make it on the tax roles. I got fed up with the REO when they pulled the "we have multiple offers please submit your best and highest". The property had been on the market for 76 days and suddenly they received multiple offers as soon as mine went in? I said pass and am buying something else. I see it just relisted again. Hmmm yeah multiple offers my .....